Samsung will have stock of 50 million smartphones due to sharp drop in demand

Deepak Gupta June 22, 2022
Updated 2022/06/22 at 12:44 PM

Samsung remains the best-selling smartphone brand in Europe as well as the world, but demand for these devices has dropped dramatically. After two difficult years due to COVID-19 and chip shortages, 2022 looked like a year of true recovery… but the war changed everything again.

Samsung is expected to have a huge stock of smartphones held back, with no demand. Sources speak of 50 million devices.

According to a publication made by a South Korean media outlet, Samsung is facing a serious stock problem. There will, in fact, be more than 50 million smartphones stopped, in addition to those that resellers already have.

Samsung will stock 50 million devices

Samsung will aim for this year to sell about 270 million smartphones this year, but the 50 million stopped already represent 18% of this value. An acceptable value to have in stock is around 10%, so the problem for the manufacturer appears to be real.

It will be the A line, Samsung's best seller, which is having the greatest difficulties to leave the warehouses. In addition to the fierce supply in this range, there are still problems of low demand worldwide.

In view of these drops in sales, the company will have already reduced its demand for components from its suppliers by 30% to 70% between April and May. In addition, sales of 20 million units per month accounted for at the beginning of the year, dropped to 10 million in May.

The year 2022 was expected to be a year of growth after two years hit by the pandemic and shortage of components, so the manufacturer's forecasts should have been revised upwards, like those of other companies in the sector. However, the war taking place in Ukraine is having serious economic consequences for the entire world, with a general increase in inflation.

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